Closing Bell: Sensex, Nifty end marginally lower; realty, PSU banks shine, FMCG drags

Indian equity indices ended marginally lower with Nifty at 25,350 on September 13. At close, the Sensex was down 71.77 points or 0.09 percent at 82,890.94, and the Nifty was down 32.40 points or 0.13 percent at 25,356.50.

We wrap up today's edition of the Moneycontrol live market blog, and will be back Monday morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

Equity markets saw a strong performance this week with the benchmark and most of the sectoral indices posting gains. The Nifty-50 and the Sensex-30 index gained ~2% this week. Most of the sectoral indices ended the week with gains, with the exception of BSE Energy and BSE Oil & Gas indices.

Sentiments in global equity markets remained positive, as US macro data provided broad comfort in inflation management, even as labor data disappointed a bit. Meanwhile, the recent correction in global oil prices on increased concerns about global demand is a positive for the Indian economy.

India’s CPI inflation at 3.7%, remained steady in August 2024. Comfortable domestic inflation and benign global conditions should provide leeway to the RBI. In Europe, the ECB lowered its deposit rate by 25 basis points to 3.50%. The focus in the coming week will on the upcoming US Fed meet as they approach towards monetary easing.

Nifty opened on a positive note and consolidated during the day to close marginally in the red down ~32 points. On the daily charts we can observe that after the sharp upmove in the previous trading session Nifty has consolidated. The price action is along expected lines and can continue over the next couple of trading sessions. The undertone is bullish, and it is likely to resume its upmove once the consolidation phase is complete. The upside is likely towards 25500 - 25700. Support is placed in the zone of 25200 – 25150.

Bank Nifty broke above the previous day high and continued its upmove. It managed to close in the green up with gains of 166 points. Positive crossover on the daily and hourly momentum indicator supports the upmove in the case of Bank Nifty. The level of 52000 is acting as a stiff resistance and a move beyond it could lead to a rally towards 52500 – 52600. Support zone is 51500 – 51400.

After a sharp fall in early trades, key indices recouped most of their losses to end marginally lower on select profit-taking in power, oil & gas and FMCG shares. Markets were mostly range-bound after Thursday's sharp upsurge and investors could now be in a wait and watch mode ahead of next week's Fed policy meeting.

The index remained range-bound throughout the day. On the higher end, it faced resistance at the rising trendline on the daily chart. On the lower timeframes, the RSI has entered a bearish crossover, signaling an early indication of a potential bearish momentum reversal.

In the near term, the trend may remain sideways. Support is observed at 25,150–25,200, while resistance is seen at 25,460.

#1 Market reverses last week’s losses, Sensex & Nifty rise 2% each

#2 Broader markets outperform, Midcap index & Nifty Bank rise up to 3% each

#3 All sectoral indices ex-Nifty PSE end with gains, IT & FMCG index up nearly 3% each

The markets saw lackluster trading on Friday, ending slightly lower as they took a breather following a strong surge. After a flat opening, the Nifty fluctuated within a narrow range throughout the session and ultimately closed at 25,344.

Sectoral performance was mixed, with realty and metals showing solid gains, while FMCG and energy declined. Meanwhile, the broader indices outperformed the benchmark, each rising by over half a percent.

The swift recovery in US markets, along with the recent uptick in foreign inflows, is driving this upward movement. We remain bullish and recommend using any interim dips to accumulate high-quality large-cap and large mid-cap stocks.

The market took a breather and ended on a flat note after the previous day’s sharp uptick. Despite domestic CPI inflation being within RBI's target band, the increase in food prices may influence the central bank to remain prudent on rates.

Higher liquidity from FIIs to the domestic market and a slide in US 10-year yield increased the prospects of the FED rate cut, which will aid domestic sentiment.

Indian rupee ended 8 paise higher at 83.89 per dollar on Friday versus Thursday's close of 83.97.

Indian equity indices ended marginally lower with Nifty at 25,350 on September 13.

At close, the Sensex was down 71.77 points or 0.09 percent at 82,890.94, and the Nifty was down 32.40 points or 0.13 percent at 25,356.50. About 2363 shares advanced, 1431 shares declined, and 102 shares unchanged.

Wipro, Bajaj Finance, Bajaj Finserv, Axis Bank and IndusInd Bank are among the major gainers on the Nifty, while losers are ITC, Adani Ports, HDFC Life, Coal India and SBI Life.

BSE Midcap index up 0.5 percent, while smallcap index up 1%.

Among sectors, except FMCG, power and oil & gas, all other indices ended in the green with IT, media, metal, realty and PSU Bank up 0.5-1.7 percent.

Mahindra & Mahindra Financial Services at their meeting held today approved the expansion into mortgage business which would include providing Housing Finance, Top-up Loans, Lease Rental Discounting, Home Improvement and Home Extension Loans, Balance Transfer Loans and Construction Finance etc.

#1 Gagillapur site under a cloud

#2 Company is expected to implement remediation measures to address the issues

#3 Currently, there is no major product pending for approval & is built into estimate from this site

#4 Await clarity on impact of remediation measures on ongoing business

#5 Expect a 36 percent earnings CAGR over FY24-26

#1 Company continues to spend on new beds, hiring doctors & adding clinical specialities

#2 Believe current price doesn’t fully reflect challenges in its key Lucknow Market

#3 There is execution risk at new hospitals

#4 Better-than-expected growth in its Lucknow hospital is key upside risk

The Sensex was down 57.67 points or 0.07 percent at 82,905.04, and the Nifty was down 40.40 points or 0.16 percent at 25,348.50.

#1 Quick commerce is a compelling product & all consumers are embracing It

#2 Zomato remains at the center of the convenience

#3 Company prioritising long-term leadership over short-term profitability

#4 Like the strategy & update estimates for BlinkIt upwards

#1 Recent trends in auto volumes across key global markets have been weak

#2 OEMs have been guiding down on volume guidance, especially in EU

#3 Further newsflow on weakness in demand could result in stock’s underperformance

#4 Build-up of inventory could result in stock’s underperformance over near-term

#5 Debt could stress balance sheet, company already has net debt of Rs 16,000 crore (including leases)

#6 If funds are raised via equity route, could see EPS dilution

#7 Valuations at 38/32x FY25/26 EPS provide little comfort

#1 Godfrey Phillips' board will meet on September 20 to consider a bonus issue in the ratio of 2:1

The company has received a letter from Central Railway for the construction of a new broad gauge line between Dhule (Borvihir) and Nardana (approximately 49.45 km) on the Central Railway in Engineering & Procurement (EPC) mode.

The project cost is Rs 716.11 crore, with a construction period of 30 months. The appointed date is set for September 4, 2024.

Nazara Technologies at its meeting held on September 12, 2024, approved to make strategic investment by way of secondary acquisition of 18,96,674 fully paid-up equity shares of Rs 10 each, representing 47.71% of the equity share capital, on fully diluted basis, of Moonshine Technology from its existing shareholders for an aggregate consideration not exceeding Rs 831.51 crore partly by way of cash consideration of Rs 592.26 crore and the balance of Rs 239.25 crore by way of a share swap through issuance of fully paid-up equity shares of the company on preferential basis.

Further, approved the proposal to infuse primary funds not exceeding Rs 150 crores into Moonshine by way of subscription to its Compulsory Convertible Preference Shares

Also, approved issuance of up to 25,07,146 fully paid up equity shares of the company having face value of Rs 4 each, at an issue price of Rs 954.27 per equity share aggregating to Rs 2,39,24,94,213.42, to the existing shareholders of Moonshine, as consideration other than cash, for the acquisition of 13.61% of the equity share capital, on fully diluted basis, of Moonshine.

The board of directors at its meeting held on September 12, 2024 has approved augmentation of Cochin Coimbatore Karur Pipeline (CCKPL) and Irugur Devangonthi Pipeline (IDPL) along with setting up of Palakkad TOP Kerala.

The board of directors of Max Healthcare Institute at their meeting held on September 13, 2024, approved execution of strategic collaboration agreement with Lakshdeep Investments and Finance and Lakshdeep Infrastructure and Holdings.

Lakshdeep Group entities are indirect holding companies of Jaypee Healthcare (JHL) who have been permitted to work out / submit a viable plan/solution in relation to the revival of JHL

The NCLAT has approved the settlement agreed to between Lakhsdeep Group and the Committee of Creditors of JHL vide its order dated September 12, 2024.

The company, as strategic partner under the aforesaid arrangement, shall enter into an agreement to acquire ~64% equity stake of JHL within 30 days of NCLAT order.

The company proposes to enter into option agreement for acquisition of remaining ~36% equity stake.

The earnings estimates for FY25 and FY26 only factor in exceptional gains from PIEL’s AIF exposures and no tax incidence in the foreseeable future.

Because of the uncertainty and unpredictability around the timing of the monetization of its stake in Shriram Life and General Insurance, broking house not factored it in its estimates.

It does, however, provide streams of one-off gains, which can help offset the credit costs required to dispose of the stressed legacy AUM.

Do not see catalysts for any meaningful improvement in the core earnings trajectory of the company.

Expect PIEL to deliver ~1.7% RoA and ~6% RoE in FY26 and value the lending business at 0.6x FY26E P/BV (unchanged).

Tata Power EV Charging Solutions, a subsidiary of Tata Power Renewable Energy signed a Memorandum of Understanding (MoU) with Tata Motors to set up 200 fast-charging stations for electric commercial vehicles (CV) in all metros cities viz. Mumbai, Delhi, Chennai, Bengaluru, Kolkata.

A plan of merger of Zen3 Infosolutions (America) Inc., wholly-owned step-down subsidiary of Tech Mahindra with its parent company viz. Tech Mahindra (Americas) Inc., wholly-owned material subsidiary of the company, has been approved by the board of directors of the respective

companies on Friday, September 13, 2024 (IST).

The company has received order from the Office of Commissioner of Customs, New Custom House, Mumbai-01, Maharashtra levying custom duty of Rs 54,61,050, fine of Rs 10,00,000/- u/s 125, penalty of Rs 54,61,050 u/s 114A and Rs 20,00,000, u/s 114AA of the Customs Act 1962.

#1 Company is investing heavily to improve its operational efficiency & patient reach in focus markets

#2 Expect notable margin drag on costs related to its new hospital in the cayman islands

#3 Benefits from current initiatives are likely at least 2-3 years away

#1 Company confident of driving sustainable VNB growth by balancing growth, profitability & risk management

#2 Technology & analytics is at core – driving innovation, better customer experience

#3 Deepening of distribution and improving productivity should drive healthy growth

RailTel Corporation of India has received the work order from Northern Railways for Railway Project amounting to Rs 19,69,96,886.

The Great Eastern Shipping Company has contracted to sell its 2005 built Suezmax Crude Tanker, Jag Lalit of about 158,344 dwt on September 13, 2024 to an unaffiliated third party. The vessel will be delivered to the new buyer by Q3 FY25.

#1 De-risking franchise through loan diversification & prudent risk policies is actively underway

#2 Business momentum is healthy across segments

#3 Bank is comfortable with MFI book trends despite headwinds for industry players

Gold prices soared to an all-time high on Friday as the dollar weakened amid the prospect of a reduction in U.S. interest rates, while palladium has gained 15% so far this week.

Spot gold was up 0.4% at $2,567.99 per ounce, after hitting a record high of $2,570.03 earlier in the session. Bullion has gained about 3% for the week so far.

U.S. gold futures rose 0.6% to $2,596.20.

The domestic market experienced a minor consolidation in line with Asian peers due to correction of commodity prices like crude which has collapsed to $70.

Market sentiment remained cautious due to the slowdown in the Chinese economy. Investors await the release of the US CPI and domestic inflation data. It is anticipated that US inflation will have an uptick in monthly data, while domestic inflation is expected to remain stable.

Additionally, this muted trend was influenced by the BoJ’s indication of a potential rate hike if inflation remains elevated.

Shares of Purvankara were locked at 5 percent upper circuit at Rs 456 apiece on September 13 after the company secured redevelopment rights of Miami Apartments at Breach Candy, South Mumbai. This marks Puravankara’s debut in the upscale South Mumbai market, where real estate prices range from Rs 1,25,000 to Rs 1,40,000 per square foot, over a prime 2,000-square-meter plot. READ MORE

In a recent update, international brokerage Bernstein has reaffirmed its 'outperform' rating on Zomato, raising its target price from Rs 275 to Rs 330. Bernstein has a positive view on Zomato’s prospects amid the growing quick commerce (QC) sector. The target price implies an upside of around 13 percent. READ MORE

Life Insurance Corp (LIC) has hiked its stake in Railway PSU Indian Railway Catering and Tourism Corporation (IRCTC) to about 9.3 percent, the state-run insurance company said in an exchange filing. The firm said its holding in railway sector 'miniratna' PSU has increased 2.02 percent between December 16, 2022 and September 11, 2024 via open market purchases. READ MORE

The company has announced the acquisition of a 100 percent stake in Zeena SAS, a software company based in Paris, France, at an enterprise valuation of EUR 23.9 million.

The company has received a letter from Central Railway for the construction of a new broad gauge line between Dhule (Borvihir) and Nardana (approximately 49.45 km) on the Central Railway in Engineering & Procurement (EPC) mode.

The project cost is Rs 716.11 crore, with a construction period of 30 months. The appointed date is set for September 4, 2024.

The company has approved the offer, issue, and allotment of 15 lakh warrants at Rs 500 each, which includes a premium of Rs 490.

#1 Quick commerce is a compelling product & all consumers are embracing It

#2 Zomato remains at the center of the convenience

#3 Company prioritising long-term leadership over short-term profitability

#4 Like the strategy & update estimates for BlinkIt upwards

BLS International Services Limited has signed an agreement to acquire a 100 percent stake in Citizenship Invest, a Dubai-based firm specializing in investor programs for residence and citizenship in over 15 countries. The acquisition, valued at $31 million (approximately Rs 260 crore), will be funded through internal accruals and is expected to be completed by October 31, 2024, pending approvals.

A wholly owned subsidiary of the company, Chartered Comcare IFSC Limited, has been incorporated in GIFT City on August 12, 2024.